REVIVING

BOMBAY DYEING
GROUP 7
PARAS PRATEEK BHATNAGAR – IPMX12026
PRAVEEN KUMAR BARUI – IPMX12028
PRIYANKA BOSE – IPMX12030
RAJAT GUPTA – IPMX12032
VARUN PANDEY – IPMX12051
To  Engage in Sustainable practices.
 create,  Maintain Quality of products.
 maximize and  Company values – Integrity, excellence,
 sustain long-term respect, teamwork and trust are foundation of
shareholder value organizational structure and form a basis for
day to day interaction with each other

Variety based positioning – Second order fit – Activities

Serving few needs of many are Reinforcing
customers
 Sales Profit
Company (in Million) (in Million)

Vardhman Textiles Ltd 60,928.40 6,976.00

Welspun Zucchi Textiles Ltd 6.20 4.90
Alok Industries Ltd 56,417.50 -54,363.80
Garden Silk Mills Ltd 31,155.60 -81.30
Bombay Dyeing & 44,392.00 13,308.70
Manufacturing Company Ltd
Raymond Apparel Ltd 34,548.90 2,015.00
Arvind Polycot Ltd (Merged) 622.10 85.30

Arvind Polycot Ltd (Merged) 85.30

Raymond Apparel Ltd 2,015.00

0.27%
15.15%
26.71%
Bombay Dyeing & Manufacturing Company Ltd 13,308.70

Va rdhman Textil es Ltd

Wel s pun Zucchi Textil es Ltd
Garden Silk Mills -81.30
Ltd
Al ok Industri es Ltd
19.46%
0.00%
Ga rden Si l k Mi l l s Ltd
Bombay Dyei ng & Manufa cturing Alok Industries Ltd
-54,363.80
Company Ltd
Raymond Appa rel Ltd
Arvi nd Pol ycot Ltd (Merged) Welspun Zucchi Textiles Ltd 4.90

24.74% Vardhman Textiles Ltd 6,976.00

13.66%
 GENERIC STRATEGIES OF COMPETITIVE ADVANTAGE
SOURCES OF COMPETITIVE ADVANTAGE

DIFFERENTIATION
• STRONG MARKETING ABILITY

Production Finance Logistics Marketing • PRODUCT ENGINEERING

• Cheap & Skilled • Huge investment for • Partnership with • 500 Exclusive stores
Labor Parent Group in Aug overseas suppliers run by Franchises
• 30 Experience • REPUTATION FOR QUALITY
• Economies of Scale 1879. like Aegis
• 15% Market Share in • 45% Turnover from Centers
: 1.65 Lakh Tones / • E-commerce Ready –
Annum of DMT Polyester Staple Exports • STRONG CORPORATION FROM
Archway has become
• Cheap Raw Fiber.
fully owned
Material subsidiary.
CHANNELS

• STRONG COORDINATION
AMONG R&D , PRODUCT
Size Access Options DEVELOPMENT & MARKETING.

SUSTATAINABLE Scale
COMPETITIVE Know-how
Public
ADVANTAGE Experience
Policy
Scope Markets
Strategic intent
• Company expects to grow ahead of the industry and retain its market
leadership status.
• Company has to major objectives in long run
• to reduce cost
• improve operational efficiency
• improve the sales volume by better marketing in domestic as well as export markets
• Expand leadership position in latest e-commerce sites and geared up to
exploit all emerging opportunities in the market place.
• Invest in new franchise model, organization capabilities, brand image,
vibrant new designs, new product portfolios and information technology.
Industry Structure Analysis
Factors Industry Impact Company Impact
POLITICAL: Make in India, Bombay dyeing is made
FAVOURABLE Millennial demography in India and planning to
(41%). target Millennials
through ecommerce Threat of new Entrants Customer power
and new products. (High) (Medium)
ECONOMICAL: Total market size Being industry leader
FAVOURABLE (expected 2023): USD company will be High Growth opportunities Wide range of products
226 bn, Domestic benefited by the High Domestic and export market
market growth ~ 13%, industries growth High Exports and domestic markets
Exports growth ~ 15% analysis. Industry change in retail
(Ecommerce) Rivalry
SOCIAL: FAVOURABLE Education, knowledge, Company is revamping
rural community norms operations (High)
and beliefs are technically ,hence, Dominated by
predominant in India, needs more educated unorganized sector &
especially in rural work force.
society. highly fragmented
Supplier Power Threat of Substitutes
TECHNOLOGICAL: FDI 100% Technical collaboration
FAVOURABLE for NGSSS (Next (Low) (Low)
generation Staple
spinning system) Abundant Supply of the raw No significant threat
technique from Invista material
Pollyester technologies
and Camtex Established supply channel
International INC. USA
 • GOVERTNMENT SUPPORT : VARIOUS INSTITUTES LIKE
NIFT / ATDC . TRAINING THE UNORGANISED SECTOR.
TROPICAL
TROPICAL CLIMATE
CLIMATE :: ADVANTAGE
ADVANTAGE IN
IN TERMS
TERMS OF
OF VOLUME
VOLUME • COLLABORATION WITH LOCAL PLAYERS
Critical
AND
AND COST
COST OF
OF RAW
RAW MATERIALS.
MATERIALS. • YARN-FIBER RATIO : REFERS TO OUTPUT OF YARN PER
UNIT OF FIBER USED. INDIA HAS A HIGH YARN FIBER

Success
CHEAP
CHEAP AND
AND SKILLED
SKILLED LABOR
LABOR RATION OF 0.79-0.84.

factor MODERNISATION
MODERNISATION OF
OF SPINDLES
SPINDLES AND
AND TECHNOLOGY.
TECHNOLOGY.

ROBUST
ROBUST DEMAND
DEMAND // INCREASED
INCREASED STANDARD
STANDARD OF
OF LIVING
LIVING

INTEGRATED
INTEGRATED LEAN
LEAN SUPPLY
SUPPLY CHAIN
CHAIN
EXPORTS
EXPORTS ORIENTED
ORIENTED

Integrated Lean supply chain – Lower lead time, Distribution channel

Brand positioning (Young, contemporary and ever evolving)

Modernization of Technology- Technology Absorption, adaptation and

innovation(Fashion conscious product line).

Cheap and Skilled labour

Effective usage of raw material

 Core Competence
• The Core competence of the Bombay Dyeing : Production of textiles
M/s Bombay Dyeing has learnt how to coordinate diverse skills and thus by backward and forward
integration, produce the yarn which is again used in the manufacturing of the textiles, and then
apparel and bed linen in for retails.

The Backward and forward integration clearly reflects competitive advantage

Operations Sourcing of Raw materials, Extrusion of fibres

Spinning
Weaving/ Knitting
Processing
Bed Linen/ Apparel making
Inbound The Polyester from the mills to processing unit
Value Chain Logistics
Outbound The Supply of the processed bed Linen / to the retail shops
Logistics
Marketing & Advertisements, Distribution & Retailing
Sales /Service
Support Services related to value
Chain
Firm Bombay dyeing is one of the six producers of Polyester Staple Fibre ("PSF")
Infrastructure in the country with a market share of about 15%.
It has many retail outlets and state of art Manufacturing units for Polyester
yarn and End product .
Human The company strives to strengthen its people capabilities and retain good
Resource talents in the company. Several programs related to Learning & Development,
Department Reward & Recognition, employee engagement are being worked upon.
Technology The company has taken NGSSS technology from Invista Polyester
Development Technologies and Chemtex International Inc., USA. Bombay Dyeing draws on
the latest technologies from world’s leading engineering companies.
Procurement Procuring of Raw materials to produce the yarn
 Customers -
Bed lenin
Buyers, Tower
Jute : India is the
Cotton : India
places second, Raw Silk : India largest producer of buyers.
produces 27.0 being second largest
Synthetic material: Jute with annual Middle/Upper
producer of silk 28 production estimated
million bales.
thousand metric
This industry
at 1.349 million class segments
Gujrat, Andra accounts for about tonnes. West Bengal
tonne. Karnataka is
Pradesh, Punjab 2.09 billion kg and UP are the
the largest producer
are major producer of silk largest producer of
of cotton. Jute
Substitutors -
Medical
industry, Bombay Furniture
Increase Scope of the company. Total value for Garment
Industry, Bag Dyeing outlets

Bombay dyeing increases. Welspun is a follower is Industry

yet to be established as a retail brand.

• Channel Partnering -
Leverage its channel
distribution to occupy
special featuring in India’s
leading e commerce sites
• expand the kids wear and
leisure wear to main
stream apparel using the
positioning of the
company- Pure and
cotton based products-
given Indian climate
Farmers -
Cotton, Silk,
• Knowledge Transfer : • Products with high profit
Enhancing R&D for margin can be launched
Jute, Synthetic
designing fabric print and as seperate segment fabric
material durability

Cooperative Forward Raising own Synthetic Interdependencies – Value Net

strategy integration value fabrics
TYPES OF DIVERSIFICATION - LOW
LEVEL OF DIVERSIFICATION
VERTICAL CONGLOMERATE
POLYESTER REALITY DIVERSIFICATION
RETAIL / TEXTILE INTEGRATION

Rs. 1.84 crore* Rs. 18.54 crore* Rs. 1742.42 crore*

(f.y. 2018-19) (f.y. 2018-19) (f.y. 2018-19)

RETAIL / TEXTILE POLYESTER REALITY

• BRAND • TECHNOLOGY • PRIME LOCATIONS

CRITICAL
• QUALITY • ECONOMIES OF SCALE • QUALITY
SUCCESS
• ECONOMIES OF SCALE • STANDARD OF LIVING
FACTORS
RETAIL / TEXTILE POLYESTER REALITY

• SIZE & AGE • SIZE AND AGE • SIZE AND AGE

• LINKAGES • LINKAGES • BETTER EXTERNAL RELATIONS
PARENTING
• FIT : HIGH • FIT : HIGH • FIT : LOW OPPURTUNITIES
 INTER BUSINESS LINKAGES between Polyester
RELATEDNESS : & Textiles divisions.
FIT BETWEEN CRITICAL SUCCESS FACTORS AND

HIGH
PARENTING CHARACTERSTICS

CASH UTILISATION
POLYESTER
POLYESTER TEXTILE

RETAIL / REALITY
REALITY

LOW
TEXTILE
FIT BETWEEN PARENTING OPPURTUNITIES AND LOW CASH GENERATION HIGH
PARENTING CHARACTERSTICS
 COMPETITIVE
Resources : ADVANTAGE Scope :
Sharing Wide

No of

ES

BU
C
UR

SIN
resources : Control :

SO

ESS
RE
Integrity, excellence,

Less
respect, teamwork and
trust
Financial

COORDINATION ORGANISATION CONTROL

• P.T. FIVE STARS
INDUSTRY LIMITED , INTERNATIONAL STRATEGY : SCALE/ COMPEXITY
• SUPPLYING READYMADE TERRY TOWELS AND APPERALS THROUGH
INDONESIA :
SUBSIDIARIES OR J.V. TO THE ATTRACTIVE NATIONS , ACHIEVING GLOBAL
• BETTER-OFF TEST
EFFICIENCIES AND ECONOMIES OF SCALE.
-> READY MADE • THE DECISION FOR WHERE TO COMPETE DEPENDS ON THE COUNTRY
APPERAL(VERTICAL)
ATTRACTIVENESS.
• OWNERSHIP -> SELF
ESTABLISHED
• MOTIVES FOR INTERNATIONALIZATION :
COMPANY
• INCREASE MARKET SIZE
• COUNTRY
ATTRACTIVENESS -> GOOD
• SOURCES OF COMPETITIVE ADVANTAGE:
• STRATEGIC OBJECTIVE : SCALE ECONOMIES . EXPANDING IN FAVOURABLE
• FIELDSTONE CANNON
MARKETS UTILISING THE EXPERIENCE & INNOVATION BENEFITS.
, U.S. :
• BETTER-OFF TEST • SOURCES OF GLOBAL COMPETITIVE ADVANTAGE: COMPARATIVE ADVANTAGES OF
-> TERRY TOWELS CHEAP LABOUR IN INDIA
(VERTICAL) COMPARATIVE ADVANTAGES OF CHEAP RAW
• OWNERSHIP -> MATERIALS IN INDIA
50:50 J.V. PRODUCATION ECONOMIES OF SCALE
• COUNTRY
ATTRACTIVENESS -> • ORGANIATIONAL CHARACTERSTICS : GLOBAL
GOOD
 FORAY INTO ONLINE MARKET PLACE WITH CENTRALISED ORDER PROCESSING : DIIFICULTIES

1. THE PRESENT FRANCHISE AND RETIAL STRUCTUTRE WILL RESIST THE CHANGE AS THIS WILL LEAD TO DECREASE THEIR
PROFITABILITY.

2. INTERCONNECTED NETWORK OF LOGISTICS AND DISTRIBUTION WILL GET DISTURBED.NEW CHANNELS WILL BE
NEEDED TO BE FORMED FOR ONLINE LOGISTICS.
STRUCTURE
3. NEED TO CHANGE EVERYTHING AT ONCE
CENTRAL
ORDER SYSTEM
AND LOGISTICS FIT BETWEEN
ONLINE
STRATEGY BY RETAILER THE RETAILERS SYSTEMS
MARKET
AND ONLINE
PLACE
SYSTEM
CREATE AN
ENTERPRISE WHICH
CAN WITHSTAND
TEST OF TIME
TECHNICAL DEMONSTRATE
SKILLS SKILLS TO THE BENEFITS STYLE
RETAILERS RETAILERS TO RETAILERS
NEED TO BE
TRAINED FOR
LOGISTICS
STAFF
 Strategy Implementation-
Expansion to the
Apparel segment

Financial Customer Internal Process Learning & Growth

• Churn capital from • Cross selling product • Leverage existing • Expanding

reality to Apparel sector same target audience as channel for distribution organizational
• Expand brand offerings textile. • Forward integration capabilities
by including Apparels • Shared brand value and • Shared retail space • Enchasing R&D for
• Expected sector growth satisfaction • Optimize the value designing apparels.
- $82Bil by 2020 • Enhanced customer chain to reach third • Forward integration
engagement, focus on order fit
youth
THANK
YOU